Hormuz Traffic Slumps Amid US-Iran Deal Uncertainty

Ship traffic through the Strait of Hormuz is near its lowest level in three months due to ongoing tensions between the US and Iran. According to an analysis of data from Kpler, a trade intelligence firm, the five-day average of vessel transits sat at around 13 on Tuesday, down from a daily average of 130 ships before the recent conflict.

The current traffic is about 90% lower than pre-war levels, with total oil exports averaging nearly 9 million barrels per day. This includes tankers that are transiting the strait with US military assistance, according to Energy Secretary Chris Wright. He noted that a single supertanker can carry around 2 million barrels.

The situation is precarious as Iran's top national security official, Mohsen Rezaei, stated on Tuesday that the Strait of Hormuz will not be fully opened until Washington agrees to Tehran's demands. This comes after Treasury Secretary Scott Bessent told CNBC last week that a deal could come soon to open the strait with freedom of movement for ships.